When it comes to shopping for a home loan, there are many things to take into consideration.
First, you want to be sure that you are examining mortgage rates for your specific location, as mortgage rates may vary from state to state.
If you happen to live in Baltimore, MD, you would want to Google something like Baltimore Mortgage Rates.
By doing so, you guarantee that you are obtaining rates that are accurate within your particular city and state.
Second, you need to be sure you are comparing apples to apples, so when inquiring about interest rates, always be sure to ask for an Annual Percentage Rate, or APR, as well.
Your APR is simply your quoted interest rate plus any additional costs associated with the loan, expressed as a percentage. This is truly the only way to ensure you are getting an accurate mortgage rate quote.
For example, if you were quoted a rate of 5.000%, but the APR is 5.625%, you can be sure that the fees associated with that loan are very high, and you might even be paying points.
If, however, the quoted rate was 5.000% and the APR were just 5.125%, this would indicate that the fees associated with that particular loan are very low.
Normally, the Annual Percentage Rate is found on your Truth-in-Lending agreement, or TIL, so make sure you obtain this disclosure prior to you lock in your interest rate. This will ensure that you receive the APR in a timely fashion.
Following these simple steps can help to ensure that your mortgage shopping process is quick and painless.
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